A pro-media advocacy group named and styled “African Journalist Network of Liberia” has categorically condemned recent action taken by the Central Bank of Liberia for taking over the operations of five insurance companies in the country.
It can be recalled; the CBL in recent weeks placed five insurance companies under provisional administration. The companies, according to CBL assessments, have significant capital deficits and have consistently fallen below the capital requirements for licensed insurance companies since the first quarter of 2017.
The CBL named the affected insurance companies as African Insurance Corporation of Liberia (AICOL), Capital Express Assurance Company (CEAC), Continental General & Life Insurance Corporation (CGLIC), Family Dollar Universal Insurance Services Inc. (FDUIS), and Global Trust Assurance Company (GTAC).
But in a statement issued in Monrovia over the weekend, the group described the action of the CBL as “unwarranted and completely illegal” for governments run institution to without due process shutdown or take over the operations of an independent privately run entity.
According to the group, the action of the CBL is not in the interest of the country’s economy and has put many Liberians out of jobs.
“It is highly unfortunate, ridiculous and mindboggling that the country’s insurance regulatory authority will tend to stop five companies from operating when they are immensely contributing to the growth and development of the Liberian Economy. This action of the CBL has the propensity to scare away potential investors and discourage current investors, as this will lead to the increase in the already high unemployment rate that our country currently faces,” the media group statement mentioned.
The group claimed, the CBL knowingly ignored a court stay order that was placed on its decision in an attempt to carry out, what they described as a “dubious” operation.
“We are reliably informed by our research verification process conducted, that the CBL has administrators within the premises of these companies presently operating their activities, including replacing signatories to bank accounts of the five entities. The African Journalists Network of Liberia believed this action of the CBL has the proclivity to send a negative message to the international community that believes in the protection of the rights of all parties involving in business arrangements, including investors rights,” the media group statement added.
Signed by the Group Program Manager, Calvin S. Jallah, the statement concluded that the ‘sad’ action of the CBL against insurance companies is not the first time in Liberia, as the institution is on record of not having the capacity and necessary competence to provisionally run private economic business entity.